Electric car giant Elon Musk had a weaker-than-expected performance in the fourth quarter, despite significant price cuts. The market sends the stock down.
Tesla's earnings per share came in lower than expected in the fourth quarter at 71 cents, which was lower than what economists Bloomberg spoke with had expected. The consensus was 73 cents per share.
- The company's sales reached $25.2 billion in the fourth quarter, equivalent to 264 billion kroner. It is also lower than the numbers that were expected.
- At the same time, there is an increase of 3 percent compared to the fourth quarter of 2022.
- Net profit reached $7.9 billion in the fourth quarter of 2023, representing a sharp increase from $3.7 billion in the same period in 2022.
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Record number of electric cars sold
Tesla delivered 484,507 vehicles in the fourth quarter of last year. Big price cuts helped push sales numbers to record levels, American writes CNBC.
The price cut also comes as a result of strong competition from other companies, including China's BYD.
Over the full year, Tesla increased the number of vehicle deliveries by 38 percent in 2023, bringing their total to 1.85 million.
After more than two years of delays, Tesla began deliveries of its long-awaited Cybertruck model on the eve of last year.
Tesla's share fell 2.82 percent in after-market trading just before 10:45 p.m
Shave huge sums of money
Tesla is having a strong year in 2023, with its stock price nearly doubling over the past year, according to Bloomberg.
However, the company has now seen its heaviest start to the new year on record.
Bloomberg wrote last week that the electric car maker's market value has fallen by more than $94 billion, equivalent to 971 billion kroner, so far this year.
At the time of writing, the company was valued at just over $651 billion, equivalent to NOK 6,810 billion.
The decline in value comes after, among other things, a slowdown in the growth of demand for electric vehicles.
Tesla first warned of slowing demand for electric vehicles in its third-quarter results report last year, Bloomberg writes.
He is no longer the greatest
In December, China's BYD dethroned Tesla as the world's largest seller of electric cars.
BYD reported that it sold a record 526,000 vehicles in the fourth quarter of 2023.
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